Thursday, September 11, 2008 Promote-CDO not affected by circular: COA By Cong B. Corrales
CEBU's Sinulog Foundation's deadlock with the Commission on Audit (COA) is not similar and doesn't apply to the case of Promote-CDO Foundation Inc.
In an interview, State Auditor V. Remedios Mendoza-Amil said there would be no violations committed if the public fund disbursed to a non-government organization (NGO) is used to implement a local government unit (LGU) program which is included in the LGU's work and financial plan and that the NGO tapped to implement the program as LGU's partner produce a financial account of the disbursement of public funds.
Officials in Cebu City contemplated last September 8 either to mellow down their activities or outright cancellation of their Sinulog festivities next year if the COA will not reconsider its new guideline that bars LGUs from giving financial assistance to their Sinulog Foundation Inc.
Under provision number 4.4.8 of COA circular number 2007-001, as pre-requisite for local government units (LGU) giving financial aid to NGOs as partners in implementing the LGUs program, it is stipulated "that none of (the NGOs') incorporators, organizers, directors or officials (are) an agent of or related by consanguinity or affinity up to the 4th civil degree to the officials of the GO authorized to process and/or approve the proposal, the MOA and the release of funds. Relationship of these nature shall 'automatically disqualify' the NGO/PO from being granted the fund."
But the relationship between the City Government and Promote-CDO is a different case.
In an ordinance approved in 2006, the City Government tapped Promote-CDO Foundation Inc. to handle and manage the city fiesta activities for five consecutive years.
The ordinance did not stipulate though that the City Government is entitled to infuse funds to Promote-CDO Foundation Inc. to manage the month-long secular fiesta activities happening every August.
Instead, Promote-CDO Foundation Inc. sources out its fiesta funding through sponsorships by various corporate entities. This year, the biggest sponsors were telco giant Globe and broadcast magnate GMA.
According to its website, Promote-CDO Foundation Inc. first came to light when then Representative Constantino Jaraula requested the Department of Trade and Industry (DTI)-Northern Mindanao in January 2000 to "gather the key officers of the major companies operating in the city and province to solicit their support for a unified investment promotion program for the city but at the same time support and encourage preservation and enrichment of its historical identity and cultural heritage."
From Jaraula's pork barrel, the University of Asia and the Pacific (UAP) was commissioned to come up with a strategic investment promotion program for the city.
That program gave birth to Promote-CDO Foundation Inc., which was registered both with the Securities and Exchange Commission (SEC) and the Philippine Council for NGO Certification.
Then the City Council approved an ordinance in 2006 to tap Promote-CDO Foundation Inc. to manage the annual civic fiesta celebration, which runs parallel to the religious feast day of St. Augustine. It was then Mayor Vicente Emano who signed the ordinance into law.
Jaraula, now the city mayor, and Emano, now the vice mayor, are among the 34 members of Promote-CDO Foundation Inc. as listed on their website.
COA's Amil said that after the implementation of a particular activity, all equipment and assets procured would remain the LGU's property.
"The City Government cannot, however, fund programs of the contracted NGO. It must go through the City Council as per RA 7160 or the Local Government Code," said Amil.
Cebu City Mayor Tomas Osmeña, meanwhile, talked about scrapping next year's activities altogether.
"It looks like we're going to cancel the Sinulog if COA will not allow it (exemption). The Sinulog cannot proceed with the assistance from the city," he said.
COA Circular 2007-0001 prohibits any local government unit from giving aid to any NGO whose incorporator, director, organizer or officer is related to any local official involved in the approval or release of government funds.
The memorandum was issued last October and also affects the Cebu Investment Promotion Center, Cebu City Task Force on Street Children, Cebu Pistol and Rifle Association and the Cebu City Dancesport Team.
Some city officials are either officers of these groups or are related to their officers. (With reports from Sun.Star Cebu)
